Offerpad Solutions (OPAD) stock soared as much as 70% on Friday morning after President Donald Trump said the federal government may invest up to $200 billion in mortgage bonds.
Such an initiative, he believes, will drive mortgage rates down and make it more affordable to buy a house in the U.S. “We’re bringing back the American dream,” the president wrote on Truth Social.
Despite its meteoric rally on Friday, Offerpad stock remains down more than 70% versus its 52-week high.
How Trump’s Comment Helps Offerpad Stock
Retail investors cheered OPAD stock on Trump’s social media post primarily because it stands to benefit from any policy that lowers mortgage rates and boosts housing affordability.
As an iBuyer, Offerpad’s business, buying a house from a seller and reselling it to a buyer, relies significantly on transaction volume.
A massive investment from the federal government in mortgage bonds – up to $200 billion – would ease financing costs, lower monthly payments, and expand the pool of qualified buyers.
For the U.S. housing market, this would mean faster turnaround, higher demand, and more liquidity, and for Offerpad Solutions, that would translate into more pronounced revenue opportunities and improved margins.
Why OPAD Shares Still Aren’t Worth Owning
For serious investors, OPAD shares still aren’t attractive as they face a grueling path to profitability, characterized by eroding revenues and structural financial instability.
In the latest reported quarter, Offerpad Solutions’ revenue crashed 36% on a year-over-year basis, and management’s guidance for 2026 remains underwhelming.
Moreover, despite aggressive cost-cutting, the company continues to post adjusted EBITDA losses, signaling its core iBuying business model struggles to scale without burning significant capital.
Finally, Offerpad remains a penny stock, which means it’s vulnerable to excess volatility that often ends up hurting late investors.
How Wall Street Recommends Playing Offerpad Solution
Due to the aforementioned headwinds, Wall Street remains bearish on Offerpad shares as well.
According to Barchart, the consensus rating on OPAD stock sits at “Hold” currently, with the mean target of $1.91 indicating limited potential upside from current prices.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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